Question 7 of 40
5 Points
You are considering a 3/5 ARM. What does the 5 represent?
O
A. The interest rate of the initial, fixed-rate loan period
B. The number of years that a fixed interest rate will be applied to the
loan
O
C. The total number of years in the loan
O
D. The number of years between adjustments in the interest rate

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.